If y’all can still recall, I had two scenarios in mind for EUR/JPY back on Tuesday: (1) a head-and-shoulders pattern and (2) a Fibonacci retracement setup. Well, looks like the retracement setup was in play, so congratulations on your 200 pips if you managed to ride that. If not, no worries since price began to meet sellers again when it reached the previously-tested resistance area at the 137.00 major psychological level. In the process, a potential double top reversal pattern is currently forming up. And our technical indicators look promising too since stochastic is currently indicating potentially overbought conditions while the moving averages are slowly moving closer together for a potential cross-over into downtrend mode. The neckline is around the previous support area at the 135.00 major psychological level, so if the double top is validated, then the pair could probably move lower for another 200 pips.
The resistance area around the 1.7930 handle appears to be very well-defended by the forex traders who are bullish on the pair, but the bulls ain’t no pushovers either since theykeep coming back for more, which resulted in the pair making higher lows/troughs. Y’all know what that means, right? That’s right! We’ve got us an ascending triangle! The moving averages are oscillating, but they’re mostly up, so I’ll call that an uptrend. As for stochastic, it’s currently at the overbought region, but it’s pointing up, so forex traders bullish on the pair may not be out of steam just yet. If this forex chart pattern does break, the resulting rally would probably have enough momentum to move for around 700 pips since that is roughly the height of the triangle. It’s still a triangle, though, so there’s also a possibility that price will break out to the downside, so take care.
Nothing fancy for this chart. What I’ve got here is a plain vanilla rising trend line on EUr/CHF’s 1-hour forex chart, nothing more. As y’all can see, EUR/CHF has been respecting a rising trend line since late August. Currently, the pair is making its way for a potential test of the trend line, so y’all better get ready. Looking at our technical indicators, stochastic is still some distance away from oversold territory, but it’s pointing down, so the pair could still move lower. The moving averages, meanwhile, are still in uptrend mode, but they’re coming closer together for a potential cross-over, which is worrying. In any case, make sure to practice proper risk management should you find a trade based on this or any of the other charts.
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.AUD/CAD 1-hour Forex Chart